It was a bleak and a rather forgettable Tuesday for the Indian markets, with Sensex tanking 855 points and the Nifty falling 3 percent on the back of crude price fall and the Greek crises.
But for Sanju Verma of Violet Arc Global Managers the ferocity of the fall is what caught her unaware, not the fall itself. According to her, after US bond yields fell below 2 percent and yields in Greece rose to 9.5 percent, there were telltale signs on the equity side.
"Also from a purely economic point, India is at a far more benign position. By way of subsidies alone, India will save Rs 60,000-70,000 crore just on crude price fall," she adds.
According to Verma, today's fall was not about the Russian crises or the Greek crises (potential exit of the nation from the Eurozone), it was about increasing dollar dominance. "The dollar dominance can destabilise the edifice of dollar debt that countries are sitting on," she told CNBC-TV18.
She refuses to change her sectoral strategy just on the back of today’s market fall. She continues to like ONGC despite the fall in crude prices for the simple reason that the company’s subsidy burden is expected to be reigned in at nothing less than Rs 35000 crore, more than a 30 percent fall from what the company has been battling for the last two years. She says HUL is a great place to hide.
On the upcoming earnings season, Verma doesn’t expect the earnings momentum to be dramatically different from the trajectory of the last couple of quarters. She expects things to only get better from hereon.
According to her, this year’s Budget is going to be a huge leap in faith and a huge trigger.
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